Buying land in Nainital or Bhimtal as an outsider: what the 2025 rules allow

A house near the lakes, a cottage near Kainchi Dham, a quiet plot in Ramgarh or Mukteshwar: many of the families who call us live in Delhi, Lucknow, Mumbai or abroad. Since 2025 the rules for them have changed, and some of the deals still being offered in the hills no longer fit the law. Read this before you pay an advance.

What changed in 2025

In February 2025 the Uttarakhand assembly passed an amendment to the state's land law (the Uttarakhand version of the U.P. Zamindari Abolition and Land Reforms Act, 1950), often called the new bhu kanoon. As reported at the time, its main provisions are:

• People who are not residents of Uttarakhand can no longer buy agricultural or horticultural land in 11 of the state's 13 districts. Nainital is one of the 11; only Haridwar and Udham Singh Nagar are excluded.
• A non-resident can buy residential land of up to 250 sq m, with an affidavit that neither they nor their family have bought such land elsewhere in the state.
• Purchase permissions that district magistrates used to grant now go through the state, with transactions tracked on a government portal.
• Land used for a purpose other than the one declared can be taken over by the state.

250 sq m is about 2,690 sq ft, or roughly 1.25 nali. Here is how nali converts to square feet and square metres if your seller quotes in nali.

What that means in practice

• A ‘farm plot’ or ‘orchard land’ near Ramgarh or Mukteshwar is not something an outsider can now buy in their own name.
• One residential plot of up to 250 sq m is the realistic target for a family from outside the state.
• Watch out for schemes that split land between relatives or use a local person's name. Declarations are checked, and misused land can be taken over.
• Where the plot sits matters: the rules differ inside municipal limits and outside them, so confirm the plot's status first.

Check the land before the rules

Even a plot you are allowed to buy may not be one you can build on. Before paying anything:

1. 01Check the records: the seller's name, khasra number and area in the khatauni. Here is how to read khasra and khatauni for a Nainital plot.
2. 02Check the land use. If it is still agricultural, a house needs a land use change under Section 143 first.
3. 03Check the site: slope, access, water and risk. Use our checklist for plots near Kainchi Dham, Bhimtal and Sattal.
4. 04Check what the rules let you build, especially near the lakes. See building near Bhimtal, Naukuchiatal or Sattal lake.

Planning a homestay?

Homestay registration is for owners who are permanent residents of Uttarakhand and live in the house, so it is generally not an option for an outside buyer. See building a homestay in Bhimtal, Nainital or near Kainchi Dham for the details.

Price and value

Demand from outside buyers has pushed prices well above government circle rates in places like Bhowali and the Kainchi valley. A sale deed is registered on the higher of the two, and banks lend on their valuer's figure, not the asking price. Here is how circle rate and market value work in Nainital.

This is a plain-language summary, not legal advice. The land law is being implemented and clarified, so confirm the current position with a lawyer before you buy. Our property consultant service checks the plot itself: records, access, slope and what you can build.

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